INTR01108 - Assignment 4 - Credit Card Research Worksheet
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Jan 9, 2024
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Financial Wellness - Assignment 4 Worksheet
Instructions
. To complete this worksheet, download it as a Word document. Click in each gray box to record your answer. The box will automatically expand if you need more space. Once you complete the
worksheet, please upload the worksheet to the assignment submission link in Canvas.
Part 1
. Using the information from the lectures on credit cards, identify three credit cards you would be interested in applying for. Use
Nerdwallet:
Credit Cards
to look for ones that fit your needs and lifestyle. Try to pick ones that represent different credit card networks (Mastercard, Visa, American Express, Discover).
Example:
Wells Fargo Active Cash Card, Visa, APR 14.99 to 24.99%
●
Credit card 1 with APR range:
Discover it Cash Back, Discover, APR 11.99% to 22.99%
●
Credit card 2 with APR range:
Bank of America Unlimited Cash Rewards, Visa, APR 13.99% to
23.99%
●
Credit card 3 with APR range:
Apple Card, Mastercard, APR 12.99% to 23.99%
Next, answer the following questions:
1.
Which credit card has the highest annual percentage rate and how much is it?
Credit Card Name: Bank of America Unlimited Cash Rewards, 23.99%
2.
What method is used to calculate the monthly finance charge for one of your selected credit cards? Credit Card Name: Discover it Cash Back, Average Daily Balance
3.
When does the finance charge begin to accrue on one selected credit card? Credit Card Name: Apple Card, At the time of the transaction
4.
Do any of the cards have annual fees? If so, which one(s) and how much is the fee?
none have annual fees
5.
Is there a transaction fee on any card? If so, how much?
Bank of America Unlimited Cash Rewards: 3% foreign transaction fee
6.
Is there a minimum finance charge on either of the major credit cards? If so, how much is it?
none require a minimum finance charge
7.
What is the grace period on one of the credit cards?
Bank of America Unlimited Cash Rewards: Typically, credit cards have a grace period of 21 to 25
days. During this period, you can pay your balance in full without incurring any interest. Be sure
to check the specific terms and conditions of the Bank of America Unlimited Cash Rewards credit card for the exact details on the grace period.
Part 2
. Use this Debt Repayment Calculator
from Credit Karma to answer the following questions: 8.
Rafael wants to buy a new cell phone that costs $450. According to his budget, he can afford payments of up to $62/month. Which of the three credit cards you’ve found would you recommend Rafael use to purchase the cell phone?
Discover it cash back 9.
Amy recently spent $500 on textbooks for her college courses. She cannot pay it all back right away, so she needs to calculate her estimated costs. ●
With a minimum payment of $15/month, which credit card (of the three you researched) should she use?
Discover it cash back
●
How long will it take her to pay off her debt with each of the three credit cards? Use the lowest APR for each credit card. Credit Card 1:
Discover it cash back , 45 months
Credit Card 2:
Bank of America Unlimited Cash Rewards, 47 months
Credit Card 3:
Apple Card, 46 months ●
How much interest would she pay on each? Use the lowest APR for each credit card. Credit Card 1:
Discover it cash back, $224.81
Credit Card 2:
Bank of America Unlimited Cash Rewards, $273.97
Credit Card 3:
Apple Card, $248.98
●
Are there
any incentives or rewards
that come from purchasing textbooks based on the three credit cards you selected (cashback, reward points, extra discounts…)?
Credit Card 1:
Discover it cash back, While the specifics of cashback categories may vary, it typically offers 1% cashback on all purchases and 5% cashback
in rotating categories.
Credit Card 2:
Bank of America Unlimited Cash Rewards
Credit Card 3:
Apple Card
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